AWEX wool indicators fall around 1% in previous week
Australian Wool Industries Secretariat Inc (AWIS) releases wool sale report for the week ending March 30. The Australian Wool Exchange (AWEX) Regional Indicators finished 1.0% lower, on average, at sales in Sydney, Melbourne and Fremantle this week when the US exchange rate fell by 0.2%.
The market started in a softer manner this week, with falls across all Merino types and nearly all micron ranges on Wednesday. Wools up to 19.5 microns were most affected. Crossbreds had better start, with most AWEX Micron Price Guide (MPGs) moving up by small amounts. The market eased again on Thursday, but by a smaller amount than on Wednesday. The 18.0 to 19.0 micron wools most affected and 19.5 microns to 21.0 microns least affected. The West finished on a stronger note than the East. This made up for the larger falls that occurred in that centre on Wednesday.
The falls in the Indicators were slightly greater in US currency.
The Eastern Market Indicator (EMI) at 1212¢ is 171¢ less than in the same week last year; and the season average of 1227¢ is 169¢ higher than the season average at the end of Week 39 last year.
The Western Market Indicator is 88¢ less than in the same week last year; and the season average is 186¢ above the season average at the same time last year.
In other countries, the Cape Wools Indicator was down by 2.0% from their previous sale two weeks ago. The Rand to the US exchange rate was down by 0.8%. In New Zealand, the Wool Services International Coarse Crossbred Index fell by 4.0%.
In other fibres, May futures for cotton in the United States moved up by 4.3% during the week to close at 93.52 US¢ per pound on Friday night.
42,413 bales were on offer, compared with 43,256 bales last week. 12.3% were passed in, comprised of 10.1% in Sydney, 11.3% in Melbourne and 16.1% in Fremantle. Pass-in rates for Merino fleece and skirtings were 14.1% and 14.1%, respectively.
37,175 bales were cleared to the trade.
The year-to-date offering is 51,135 bales less (-3.3%) than at the end of the same week last year (see table on the next page). Expected offerings are up by 8.8% over the next two sales, with a sharp rise in the figure for next week. This may be due to a lift in receivals following the delays caused by the heavy rain and floods earlier this month; and possibly due to some growers wanting to sell prior to the Easter break.
The US exchange rate started the week in an upward direction, only to move downwards on Wednesday and Thursday. Financial analysts partially attributed the rises to a weaker US Dollar and hints of a further “quantitative easing” in the United States. The falls were attributed to lower trading activity while traders adjusted their end of March positions and to a “wait and see” approach ahead of coming meetings in Europe.
There were falls across all average Merino AWEX Micron Price Guide (MPGs) apart from 23 and 24 microns. These two Indicators that are the least affected since the start of the season.